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The US Navy’s two major submarine shipbuilders, General Dynamics Electric Boat and Huntington Ingalls Industries, have secured a contract modification worth in total US$17.1 billion (AU$26.8 billion) to support the construction of two Block V Virginia Class submarines.
The updated contract, awarded to Huntington Ingalls Industries’ Newport News Shipbuilding in partnership with General Dynamics Electric Boat (GDEB), authorises construction of the 11th and 12th submarines in the Block V series, a key component of America’s undersea warfare capability.
As part of the contract modification, General Dynamics Electric Boat received the majority of the total US$17.1 billion (AU$26.8 billion) contract modification, with Huntington Ingalls Industries’ Newport News Shipbuilding (NNS) receiving US$1.2 billion (AU$1.9 billion).
“We appreciate the teamwork that led to these critical national security assets being placed under contract,” said Jason Ward, vice president of submarine construction at NNS. “We understand the operational edge Virginia Class submarines provide to the sailors who crew them, and our shipbuilders are committed to delivering these vessels with precision and purpose.”
These two submarines were at the centre of political contention in Washington in the waning days of the Biden administration, when the US Navy submitted an unexpected supplementary funding request to Congress, largely expected to be part of the US Navy’s efforts to lift its own submarine build capacity to better support the early-stage deliveries of AUKUS Pillar 1.
The request, intended to cover budget shortfalls affecting both boats, caught lawmakers off guard and drew sharp criticism. Legislators later chastised the Navy for a lack of transparency, citing failure to fully inform Congress and the Office of Management and Budget while simultaneously negotiating agreements with industry.
The Virginia Class submarines, including the Block V, are expected to form the basis of the US contribution to Australia’s undersea capability under the AUKUS plan. As part of the agreement, Australia will acquire at least three Virginia Class boats from the United States beginning in the early 2030s, while simultaneously building its own SSN-AUKUS submarines in partnership with the UK.
Timely delivery of the Block V submarines not only supports US Navy requirements but also plays a pivotal role in ensuring industrial base capacity and submarine availability for the AUKUS pathway. Stability and predictability in the US production pipeline are seen as essential to enabling the trilateral arrangement and building confidence in the shared long-term plan.
To date, NNS and GDEB have jointly constructed and delivered 24 Virginia Class submarines, with an additional 16 submarines currently under contract. The Block V variants, featuring the Virginia Payload Module, represent an enhanced design aimed at bolstering strike capabilities and mission versatility across a range of maritime operations.
